In the matter of BMO Nesbitt Burns Inc. - Settlement



    TORONTO, Oct. 23 /CNW/ - On October 10, 2008, a Hearing Panel of the
Investment Industry Regulatory Organization of Canada (IIROC) accepted a
Settlement Agreement between the IIROC Staff and BMO Nesbitt Burns Inc. (the
"Respondent"). Pursuant to the Settlement Agreement, the Respondent admitted
that:

    
    1.  In or about March 2003 to May 2005, BMO participated in the
        production of sales literature that failed to fairly present the
        potential risks of Univest II to the client, contrary to IDA By-laws
        29.7 (e), and 29.7(1)(e); and

    2.  In or about March 2003 to July 2004, BMO issued and/or used sales
        literature that was not first approved by a partner, director,
        officer or branch manager who was designated in writing by the
        Member, contrary to IDA By-law 29.7; and

    3.  In or about August 2004 to May 2005, BMO failed to develop
        appropriate written policies and procedures for the review and
        supervision of sales literature, contrary to IDA By-law 29.7(2)
        and/or (3).

    Pursuant to the Settlement Agreement, the Hearing Panel imposed the
following penalty against the Respondent:

    (a) A fine in the amount of $ 300,000, broken down as follows:

        (i)    count 1: $ 200,000
        (ii)   count 2: $ 50,000
        (iii)  count 3: $ 50,000

    and required the Respondent to pay costs in the amount of $20,000.
    

    The Investment Dealers Association (IDA) formally initiated the
investigation into the Respondent's conduct on or about April 2006. The
violations occurred when the Respondent was a Member of the IDA. The
Respondent is currently a Dealer Member of IIROC.
    The Hearing Panel's Reasons and Decision will be available in due course.
The Settlement Agreement is available at www.iiroc.ca.

    IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces in
Canada. Created in 2008 through the consolidation of the Investment Dealers
Association of Canada and Market Regulation Services Inc., IIROC sets high
quality regulatory and investment industry standards, protects investors and
strengthens market integrity while maintaining efficient and competitive
capital markets. IIROC carries out its regulatory responsibilities through
setting and enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through setting and
enforcing market integrity rules regarding trading activity on Canadian equity
marketplaces.




For further information:

For further information: Alex Popovic, Vice President, Enforcement,
(416) 943-6904 or apopovic@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416)
943-6996 or jkehoe@iiroc.ca


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